DEVELOPERS who own the old hospital in Baxter Gate says it remains committed to developing the site following concerns about its future.

Last week, the Echo reported that due to the current financial situation plans to re-develop the site have been “stalled” and that it is too costly and counter-productive for Charnwood Borough Council to order the demolition of the building or to carry out a compulsory purchase order.

The hospital site went up for sale in 1995.

Presently it is owned by the Moorland Group, which has put in two planning applications to demolish the hospital and transform the site into 603 student flats.

Both plans have been rejected by a Government inspector due to size, mixture of uses, lack of active frontages and public routes.

Since its refusal in 2008, the site has been left vacant, with no further plans submitted or talks that have could lead to the clean up of the building, which has angered both residents and businesses.

A spokesman for the Moorland Group told the Echo: “We are working closely and positively with the council to establish a viable mixed use development for this site.